High net worth individuals (HNWIs) want to indulge themselves in a way that recalls the post-war rebounds of the 20th century, and those in Apac and the Middle East lead the growth and will continue to do so in the future, according to a survey by Julius Baer.
Spending in Apac this past year was focused on hospitality and healthcare, highlighting how this lifestyle boom is not restricted to simply purchasing experiences and goods. In the region 74% said they had spent more on five-star hotels, while 71% said they had spent more on fine dining.
The third annual Julius Baer Lifestyle Survey polls wealthy individuals around the world to better understand their priorities, finances, and consumption patterns. It supports the index findings with qualitative analysis of the personal habits and sentiments of HNWIs.
In terms of health, Apac was either first or second in terms of increase in every health sub-category, and HNWIs in the region said their discretionary health expenses had risen over the past year. This is likely to be down to healthcare and wellness being seen as a “new luxury” to a greater degree in Apac, with 63% saying they are concerned about their health and wellbeing, the highest level of all regions in the survey.
Apac residents also paid more for jewellery and private schools compared with last year (both up 10%), although it costs less to buy a top-tier bicycle (-13%) or rent a hotel suite (-11%).
The most extreme price fall in Apac was the 14% drop in the cost of business class flights, but this appears to be a correction to the rocketing fares in 2022 and early 2023.
HNWIs from Apac have also increased the risk level of their investments. 70% of HNWIs reported increased assets in the past 12 months, and they are once again looking to build on their recent increases.
Sustainability plays a greater role in investment strategies in 2024 for almost all Apac HNWIs too, with the majority having reviewed their portfolio to understand the ESG impact of their investments. However, sustainability still only plays a minor role in actual purchasing habits.
